1. FSI International, Inc. Announces Third Quarter and First Nine Months Fiscal 2009 Financial Results MINNEAPOLIS (June 30, 2009)--FSI International, Inc. (Nasdaq: FSII), a manufacturer of capital equipment for the microelectronics industry, today reported financial results for the third quarter of fiscal 2009 and for the first nine months ended May 30, 2009. Fiscal 2009 Third Quarter and First Nine Months Sales for the third quarter of fiscal 2009 were $15.4 million, including the ORION® system revenue that was deferred at the end of the second quarter, compared to $20.3 million for the same period in fiscal 2008. The Company’s net loss for the third quarter of fiscal 2009 was $2.8 million, or $0.09 per share, compared to a net loss of $1.4 million, or $0.05 per share, for the third quarter of fiscal 2008. Sales for the first nine months of fiscal 2009 were $36.3 million, compared to $64.2 million for the same period of fiscal 2008. The Company’s net loss for the first nine months of fiscal 2009 was $17.6 million, or $0.57 per share, as compared to a net loss of $4.6 million, or $0.15 per share for the first nine months of fiscal 2008. In the first nine months of fiscal 2009, we recorded approximately $4.0 million, or $0.13 per share, of severance costs associated with the March 2009 restructuring and headcount and cost reduction initiatives and an increase in the Company's inventory obsolescence reserves. There were no severance or significant obsolescence costs recorded in the first nine months of fiscal 2008. Improved Financial Performance Model “In March 2009, we implemented a further reduction in management salaries, established two shutdown weeks, reduced our headcount and enacted other cost reduction initiatives,” said Don Mitchell, FSI chairman and chief executive officer.
Since the start of fiscal 2009, the Company has implemented headcount and other cost reductions that are expected to reduce the Company’s annual operating cost by approximately $11 to $12 million. With these actions we believe our quarterly breakeven revenue level has been lowered to between $14 and $17 million,
continued Mitchell.*
Our third quarter cash used in operating activities was held to $394,000,” stated Mitchell. “As a result of the cost reduction initiatives implemented in fiscal 2009, the Company’s quarterly operating cash flow neutral revenue level is believed to be in the $12 to $14 million range, depending on the gross margin rate and shipment/accounts receivable collection timing,
continued Mitchell.* The Company intends to manage its operations with a goal to end fiscal 2009 with greater than $10 million in cash, restricted cash, cash equivalents and marketable securities.* As industry conditions improve, FSI remains focused on aligning its cost structure to support the anticipated revenue run rate while funding the programs that provide the most significant opportunity for near-term revenue and future marketshare gains. Balance Sheet As of the end of the fiscal 2009 third quarter, the Company had approximately $66.5 million in assets, including $10.4 million in cash, restricted cash, cash equivalents and marketable securities. The Company had a current ratio of 2.9 to 1.0 and a book value of $1.62 per share at the end of the fiscal 2009 third quarter. Outlook The Company expects fourth quarter orders of $12 to $15 million as compared to $13.3 million in the third quarter of fiscal 2009.* Based on backlog and deferred revenue levels at the end of the third quarter and expected fourth quarter orders, the Company expects fourth quarter fiscal 2009 revenues to be approximately $12 to $15 million as compared to $15.4 million in the third quarter of fiscal 2009.* Based upon anticipated gross profit margins and the operating expense run rate, the Company expects a net loss of approximately $1.0 to $2.0 million for the fourth quarter.* The Company expects to again use less than $1.0 million of net cash in operating activities in the fourth quarter, after using $394,000 in the third quarter, as we manage accounts receivable and inventory.* Conference Call Details FSI investors have the opportunity to listen to management’s discussion of its financial results on a conference call at 3:30 p.m. CT today. The Company invites all those interested to join the call by calling 888.950.7568 and entering access code 1955509. The webcast is also being distributed through the Thomson ONE StreetEvents Network to both institutional and individual investors. Individual investors can listen to the call at www.earnings.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson’s password-protected event management site, StreetEvents (www.streetevents.com). For those who cannot listen to the live broadcast, a replay will be available shortly after the call by calling 866.419.5469. About FSI FSI International, Inc. is a global supplier of surface conditioning equipment, technology and support services for microelectronics manufacturing. Using the Company’s broad portfolio of cleaning products, which include batch and single-wafer platforms for Immersion, Spray, Vapor and CryoKinetic technologies, customers are able to achieve their process performance flexibility and productivity goals. The Company’s support services programs provide product and process enhancements to extend the life of installed FSI equipment, enabling worldwide customers to realize a higher return on their capital investment. For more information, visit FSI’s website at http://www.fsi-intl.com.